Green Mountain Ltd is a merchandising company that is trying to decide how many units of merchandise to order each month. The company's policy is to have 20% of the next month's sales in inventory at the end of each month. Projected sales for August, September, and October are 30,000 units, 20,000 units, and 40,000 units, respectively. Calculate the number of units to be purchased in September?

02. Kajiado Ltd makes mugs for which the following standards have been developed:

Standard Inputs Expected Standard Price Expected

For Each Unit of Output Per Unit of Input

Direct Materials 5 ounces $2 per ounce

Direct Labor 2.5 hours $8 per hour

Production of 400 mugs was expected in August, but 440 mugs were actually completed. Direct materials purchased and used were 2,100 ounces at an actual price of $2.20 per ounce. Direct labor cost for the month was $5,310, and the actual pay per hour was $9.00. What is the direct labor price

03. Urbana Ltd has no beginning and ending inventories, and has obtained the following data for its only product:

Selling price per unit $65

Direct materials used $150,000

Direct labor $225,000

Variable factory overhead $140,000

Variable selling and administrative expenses $60,000

Fixed factory overhead $370,000

Fixed selling and administrative expenses $30,000

Units produced and sold 20,000

Assume there is excess capacity. There is a special order outstanding for 1,000 units at $40.00 per unit. If Arkansas Company accepts the special order, net income would ________.

04. At the beginning of the year, Manga Ltd, determined that estimated overhead costs would be Shs 600,000, while actual overhead cost for the year totaled Shs 650,000. Furthermore, it was determined that the estimated allocation basis would be 60,000 direct labor hours, while direct laborers actually worked 62,000 hours. Calculate the amount (in kshs) under-allocated or over-allocated manufacturing overhead?

05. Kaluma Ltd, expects to sell 12,000 ceramic vases for $20 each. Direct materials costs are $3, direct manufacturing labor is $12, and manufacturing overhead is $3 per vase. The following inventory levels apply to 2020:

Beginning inventory Ending inventory

Direct materials 2,000 units 2,000 units

Work-in-process inventory 0 units 0 units

Finished goods inventory 100 units 700 units

On the 2020 budgeted income statement, what amount will be reported for cost of goods sold?

06. Tharaka Company expects to sell 15,000 ceramic vases for $20 each. Direct materials costs are $4, direct manufacturing labor is $11, and manufacturing overhead is $4 per vase. The following inventory levels apply to 2020:

Beginning inventory Ending inventory

Direct materials 6,000 units 6,000 units

Work-in-process inventory 0 units 0 units

Finished goods inventory 300 units 500 units

How many ceramic vases should be produced in 2020?

07. Fortuna Ltd expects to sell 27,000 pool cues for $13 each. Direct materials costs are $3, direct manufacturing labor is $6, and manufacturing overhead is $0.87 per pool cue. The following inventory levels apply to 2020:

Beginning inventory Ending inventory

Direct materials 29,000 units 29,000 units

Work-in-process inventory 0 units 0 units

Finished goods inventory 1,900 units 2,500 units

What are the 2020 budgeted costs for direct materials, direct manufacturing labor, and manufacturing overhead, respectively?

08. During the month of May, Sonny Company transferred 140,000 gadgets to Finished Goods Inventory. There was no beginning work-in-process inventory. The company had 40,000 gadgets in process at May 31 and the gadgets were 75 percent complete with respect to conversion costs. All direct materials are added at the end of the production process. The equivalent units for conversion costs for May are ________.

09. The Savage Company makes mugs for which the following standards have been developed:

Standard Inputs Expected Standard Price Expected

For Each Unit of Output Per Unit of Input

Direct Materials 5 ounces $2 per ounce

Direct Labor 1.5 hours $8 per hour

Production of 400 mugs was expected in July, but 440 mugs were actually completed. Direct materials purchased and used were 2,100 ounces at an actual price of $2.20 per ounce. Direct labor cost for the month was $5,310, and the actual pay per hour was $9.00. What is the direct material quantity variance for July?

10. The Cheeseman Company makes tables and the following standards have been developed:

Standard Inputs Expected Standard Price Expected

For Each Unit of Output Per Unit of Input

Direct Materials 10 pounds $4 per pound

Direct Labor 3 hours $16 per hour

Production of 230 tables was expected in July, but 250 tables were actually completed. Direct materials purchased and used were 2,200 pounds at an actual price of $4.50 per pound. Direct labor cost for the month was $10,620, and the actual pay per hour was $18.00. What is the direct material price variance for July?

11. Plastica Ltd produces plastic cups in a one-department process. The following data is available for the past month:

Work-in-process inventory, beginning 0

Units started 60,000

Units completed and transferred 48,000

Work-in-process inventory, ending 12,000

The units in process at the end of the month are 100 percent complete with respect to materials and 50 percent complete with respect to conversion costs. What are the equivalent units for materials for the month?

12. Salmon Company manufactures greeting cards. Special glittery material is added at the end of the process in the Printing Department. Conversion costs are applied uniformly throughout the process. The weighted-average method of process costing is used. Data for the Printing Department for the month of September follow:

Work-In-Process Inventory, September 1:

Units 22,500

Direct materials (0% complete) $0

Conversion costs (30% complete) $20,472

Units started in September 127,500

Units completed in September 123,000

Work-In-Process Inventory, September 30 27,000

Direct materials added in September $427,500

Conversion costs added in September $315,000

With regard to the Work-In-Process Inventory on September 30, materials are 0 percent complete and conversion costs are 60 percent complete. What is the total cost of the ending Work-In-Process Inventory?

13. Tamara Company manufactures generic notebooks. Material is introduced at the beginning of the process in the Printing Department. Conversion costs are applied uniformly throughout the process. The weighted-average method of process costing is used. Data for the Printing Department for the month of June follow:

Work-In-Process Inventory, June 1:

Units 15,000

Direct materials (100% complete) $35,000

Conversion costs (30% complete) $8,400

Units started in June 65,000

Units completed in June 62,000

Work-In-Process Inventory, June 30 18,000

Direct materials added in June $285,000

Conversion costs added in June $210,000

With regard to the Work-In-Process Inventory on June 30, materials are 100 percent complete and conversion costs are 60 percent complete. What is the total cost of goods transferred out of the Printing Department?

14. The following information is available for Sabatia Company:

Sales $1,000,000

Variable Selling Expenses 22,000

Fixed Selling Expenses 33,000

Variable Administrative Expenses 30,000

Fixed Administrative Expenses 10,000

Variable Cost of Goods Sold 400,000

Fixed Cost of Goods Sold 100,000

If sales increase to $1,500,000, what is operating income?

15. Yemen Company has the following information available:

Selling price per unit $100

Variable cost per unit $45

Fixed costs per year $420,000

Expected sales per year (units) 20,000

If variable costs increase to $65 per unit and fixed costs increase by $200,000, what is the break-even point in units?

16. The following information is available for Kangara Company:

Total fixed costs $313,500

Variable costs per unit $99

Selling price per unit $154

If management has a targeted net income of $46,200, then the number of units that must be sold is ________.

17. Assume the following information for Janice Company:

Selling price per unit $100

Variable costs per unit $80

Total fixed costs $80,000

If fixed costs increased by 10% and management wanted to maintain the original break-even point, then the selling price per unit would have to be increased to ________.

18. Assume Unicorn Company has the following information available:

Selling price per unit $100

Variable cost per unit $45

Fixed costs per year $420,000

Expected sales per year 20,000 units

If variable costs increase to $65 per unit, what is the expected net income for one year?

19. Assume Hull Company has the following information available:

Selling price per unit $100

Variable cost per unit $40

Fixed costs per year $400,000

Expected sales per year (units) 20,000

If fixed costs increase by $200,000, what is the break-even point in units?

20. Suppose Shady Lane Hotel has annual fixed costs applicable to its rooms of $1.0 million for its 300-room hotel. Average daily room rents are $60 per room and average variable costs are $10 for each room rented. It operates 365 days per year. What percent of occupancy is needed to breakeven?